GEOCAN Energy Announces Second Quarter 2008 Results

2008 Second Quarter Results

Cash flow from operating activities was $2.73 million ($0.05/diluted share) for the second quarter 2008 compared to $4.04 million ($0.07/diluted share) for the second quarter 2007. Earnings after tax were $0.51 million or $0.01/diluted share for the second quarter 2008 compared to a loss of $(1.27) million or ($0.02)/diluted share in the second quarter 2007.

Six month 2008 cash flow was $7.95 million ($0.14/diluted share) compared to $6.86 million ($0.13/diluted share) for 2007. Six month 2008 earnings after tax were $0.28 million or $nil/diluted share compared to a loss of $(4.25) million or $(0.08)/diluted share for the six month period of 2007.

GEOCAN averaged sales of approximately 917 BOE/d during the second quarter split 42% to light and medium oil and 58% natural gas.

Natural gas prices averaged $10.56/mcf in second quarter 2008, up 43% from $7.37/mcf in second quarter 2007. Light and medium oil prices (before financial instruments) averaged $102.75/bbl in second quarter 2008 up 99% from $51.60/bbl in second quarter 2007.

The Company had two hedge contracts in place during the second quarter. One of these, a swap contract for 125 boepd at USD$72.15/bbl WTI expired on June 30, 2008. As at June 30, 2008, the Company had one contract remaining for 150 boepd at USD$75.25/bbl WTI which will expire on December 31, 2008.

GEOCAN is strategically focused within three core areas, namely, east central Alberta, west central Alberta and northeastern British Columbia. GEOCAN holds 121,415 gross (78,247 net) undeveloped acres of land within its three core areas. -- www.cnxmarketlink.com